Analysis and Recommendation: The USD/JPY continues to climb seeing the pair hit 83.64 a multi month high. With elections scheduled for December 16th,
The USD/JPY continues to climb seeing the pair hit 83.64 a multi month high. With elections scheduled for December 16th, political uncertainty continues to weigh on the yen. Also additional stimulus from the Bank of Japan weakens the currency. The decision by the FOMC to increase stimulus and bond buying programs lowered the US dollar against its partners except for the JPY.
The Fed meeting comes ahead of Japan’s general election on Dec. 16, which is expected to see the Liberal Democrat Party regain power, and reinstall Shinzo Abe as prime minister. The LDP has been frank its desire to weaken the yen as it deals with rising energy prices and dwindling exports. Ultimately the yen will weaken, and weaken by quite a bit, but it’s not because there is a new government; it will be because the current account has gone from a very strong surplus to negligible over the last year or so.
FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports.
Economic Data December 13, 2012 actual v. forecast
Date |
|
Currency |
|
|
Event |
Actual |
|
Forecast |
|
Previous |
|
|
Dec. 13 |
|
KRW |
|
|
South Korean Interest Rate Decision |
2.75% |
|
2.75% |
|
2.75% |
Upcoming Economic Events that affect the AUD, NZD, JPY and USD
Date |
Time |
Currency |
Event |
Forecast |
Previous |
Dec. 14 |
04:30 |
JPY |
1.8% |
Government Bond Auction
Date Time Country
Dec 14 11:00 Belgium
Dec 14 15:30 UK